The world’s largest sovereign wealth fund, the Norwegian Government Pension Fund, reported a loss of $164 billion in 2022, citing turbulent markets.
War in Europe, high inflation, and rising interest rates impacted the market. Nicolai Tangen, CEO of Norges Bank Investment Management, which manages the fund, said in a statement that it was highly unusual for both the stock market and bond market to be badly affected at the same time.
The investment return was -14.1 percent.
“With the exception of energy, all sectors of the equity market had negative returns,” Tangen remarked.
The fund financed by taxes paid by the nation’s oil and gas industry remained at 12,43 trillion kroner (about $1.2 trillion) at the end of 2022.
Still greater than the 12.34 trillion kroner owned by the fund at the end of 2021, thanks to 1.09 trillion kroner in fresh tax inflows.
The fund’s assets consisted of 69.8 percent stocks, 27.5 percent fixed income, 2.7 percent real estate, and 0.1 percent renewable energy infrastructure.
»Sovereign wealth fund of Norway loses $164 billion in 2022«